IRA Non-Recourse Real Estate Loans

Are you looking to purchase real estate with your IRA? First National Bank of America offers IRA Non-Recourse Real Estate Loans.

Required Documentation

The following documents are required to apply for IRA Non-Recourse Real Estate Loans. For more information on what First National Bank of America can offer, please contact Scott Raymond at 616-538-6017 or sraymond@fnba.com

Completed Loan Application

Purchase/sales agreement

Current IRA or 401K Solo statements (all pages)

Instruction form from Custodian / Administrator for purchase of real estate, if required

Copy of picture ID

Most recent W-2 or 1st page of tax return for IRA owner (signed)

If property is currently leased, a copy of the lease agreement

Current rent roll

Insurance agent name and phone number

Real estate agent name and phone number

Title Company name and phone number

Copy of previous appraisal, if applicable

If an LLC will own the property, include the following data:

Name of LLC

Operating Agreement

Articles of Organization

Resolution authorizing the loan transaction

Tax ID number

Appraisal fee of $595 made payable to First National Bank of America (to be submitted with application)

Non-Recourse IRA Real Estate Loan FAQs

What is a Non-Recourse loan?

This is a loan in which the owner of the IRA is not personally liable for the repayment of the loan. Simply said, the bank’s security is the property itself and there is no recourse against the owner of the IRA. In the event of default, the property is the only source of repayment.

How can I apply for a Non-Recourse loan?

Complete the enclosed application and return to First National Bank of America by email, fax, or mail. Contact data is as follows:

Who is eligible for a Non-Recourse loan?

Anyone who has the required 40% to 50% down payment available in their self-directed IRA. This is subject to underwriting approval which will include satisfactory review of the subject appraisal and liquidity verification.

Can properties be held in a LLC?

Yes, this can be done. Please consult with your tax and/or legal advisor or IRA administrator.

What is the processing time for a Non-Recourse loan?

Typical processing time is 30 to 45 days from application to close.

Is your program offered in all 50 states?

FNBA will finance 1 to 4 family homes in all 50 states. 5+ unit properties need to be located within the state of Michigan.

Can FNBA set up my Self-directed IRA?

No. You will need to select your own administrator.

Is there an income requirement for my rental property?

Yes. The property must generate net operating income that exceeds debt payments by 20% to 25%.

Do you require an escrow account for property taxes and insurance?

Yes. Both will be included in your monthly payment.

What type of rental properties are eligible for FNBA’s program?

Single family residential, duplexes, 4-plexes, and multi-family.

What terms are available?

1 year interest only, 3, 5, 7, and 10 year balloons with up to 20 year amortizations are all available.